Figma Q2 2026 Earnings: Revenue Rises 48% on Seat and AI Expansion
Figma (NYSE: FIG) reported fiscal Q2 2026 revenue of $370.1 million, up 48% year over year, while GAAP diluted EPS was a loss of $0.21 versus approximately breakeven a year earlier. Customer expansion and the first full quarter of AI-credit monetization supported growth, but higher operating expenses and stock-based compensation produced a GAAP net loss despite positive free cash flow.
Key Financial Results
Revenue growth accelerated for a third consecutive quarter, and GAAP gross profit increased 40%. However, cost of revenue rose faster than sales, reducing both GAAP and non-GAAP gross margins by five percentage points.
Operating results diverged sharply by accounting basis. Figma recorded a $117.3 million GAAP operating loss but generated $36.1 million of non-GAAP operating income, reflecting substantial excluded stock-based compensation and related items.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Revenue | $370.1M | $249.6M | +48% |
| GAAP gross profit / margin | $309.6M / 84% | $221.8M / 89% | +40%; margin down 5 pts |
| GAAP operating income (loss) / margin | $(117.3)M / (32)% | $2.1M / 1% | Swung to a loss |
| Non-GAAP operating income / margin | $36.1M / 10% | $11.5M / 5% | Approximately +215% |
| GAAP net income (loss) | $(112.2)M | $28.2M | Swung to a loss |
| GAAP diluted EPS | $(0.21) | Approximately $0.00 | Declined |
| Operating cash flow / margin | $60.9M / 16% | $62.5M / approximately 25% | Cash flow down approximately 2.5% |
| Free cash flow / margin | $53.2M / 14% | Not provided | — |
Non-GAAP measures exclude stock-based compensation, employer payroll taxes on employee stock transactions, acquired-intangible amortization, and certain other items.
Customer Expansion and AI Adoption
Management attributed the quarter’s growth to additional seats and AI-credit add-ons. Larger customer counts grew faster than the broader group of customers generating more than $10,000 in annual recurring revenue, while AI usage was already widespread within that cohort.
| Operating metric | Latest result | Change or measurement date |
|---|---|---|
| Net dollar retention rate | 136% | June 30, 2026 |
| Paid customers with more than $10,000 in ARR | 15,964 | +34% year over year |
| Paid customers with more than $100,000 in ARR | 1,635 | +46% year over year |
| Customers above $10,000 ARR consuming AI credits weekly | More than 80% | June 30, 2026 |
| Customers above $10,000 ARR using the Figma agent weekly | More than 50% | July 31, 2026 |
Q2 was Figma’s first full quarter of AI-credit monetization. The company also introduced Code Layers, additional creative capabilities, and a first-party Figma agent, expanding the number of AI-supported activities available on its design canvas.
Stock-Based Compensation Drove the GAAP Loss While Cash Flow Stayed Positive
Total GAAP operating expenses increased approximately 94% to $426.9 million. Figma said additional sales and marketing spending associated with its annual Config conference affected both GAAP and non-GAAP operating income, while the company continued investing in newly introduced products.
The larger factor behind the accounting divergence was stock-based compensation, which rose to $147.6 million from $7.3 million. This expense accounted for most of the bridge between the $117.3 million GAAP operating loss and $36.1 million of non-GAAP operating income.
Stock-based compensation is non-cash in the current period and helped reconcile the net loss to $60.9 million of operating cash flow. Nevertheless, operating cash flow was slightly below the prior-year period despite 48% revenue growth, and its margin fell to 16%. Figma ended the quarter with approximately $1.7 billion of cash, cash equivalents, and marketable securities.
Guidance
Figma raised its full-year revenue outlook by $40 million, citing sustained seat expansion and AI adoption. At the same time, the Q3 midpoint implies 36% year-over-year growth, below the 48% reported in Q2.
| Metric | Latest guidance | Previous guidance | Change |
|---|---|---|---|
| Q3 2026 revenue | $373M–$375M | Not provided | Midpoint implies 36% growth |
| FY2026 revenue | $1.463B–$1.467B | Exact range not provided | Raised by $40M; midpoint implies 39% growth |
| FY2026 non-GAAP operating income | $125M–$135M | Not provided | Midpoint implies a 9% margin |
The outlook does not include a reconciliation of non-GAAP operating income to GAAP operating income because Figma said certain excluded items cannot be reasonably predicted.
Recent Insider Transactions
The supplied Yahoo Finance data show 16 insider purchase transactions covering 9,284,900 shares and 31 sale transactions covering 2,478,450 shares over the past six months, resulting in reported net purchases of 6,806,450 shares. The same data report total insider holdings of 9.32 million shares and a 270.70% net-purchase metric; the latest individual filings, however, were predominantly sales and should be viewed separately from the six-month aggregate.
The following are the 10 most recent transactions in the supplied data. Reported values are reproduced without inferring insiders’ views about Figma’s prospects.
| Date | Insider and role | Reported transaction | Ownership | Reported value |
|---|---|---|---|---|
| Aug. 3, 2026 | Tyler Herb, Officer | Sale at $26.00 per share | Direct | $39,936 |
| July 29, 2026 | Praveer Melwani, CFO | Derivative-security exercise at $23.19 per share | Direct | $9,172,321 |
| July 29, 2026 | Praveer Melwani, CFO | Sale at $25.13 per share | Direct | $9,581,424 |
| July 29, 2026 | Kristopher Rasmussen, CTO | Sale at $25.07 per share | Direct | $6,550,450 |
| July 29, 2026 | Brendan Mulligan, General Counsel | Sale at $25.00 per share | Direct | $455,385 |
| July 14, 2026 | Shaunt Voskanian, Officer | Sale at $23.92 per share | Direct | $268,374 |
| July 6, 2026 | Shaunt Voskanian, Officer | Sale at $20.62 per share | Direct | $177,911 |
| July 6, 2026 | Praveer Melwani, CFO | Sale at $20.48 per share | Direct | $623,894 |
| June 3, 2026 | Shaunt Voskanian, Officer | Sale at $22.75–$23.89 per share | Direct | $2,013,749 |
| June 3, 2026 | Praveer Melwani, CFO | Sale at $22.75–$23.69 per share | Direct | $1,911,907 |
Risks Investors Should Monitor
- Gross-margin pressure: GAAP gross margin declined to 84% from 89%, while non-GAAP gross margin fell to 85% from 90%. Cost of revenue more than doubled, outpacing revenue growth.
- The GAAP and non-GAAP earnings gap: Stock-based compensation reached $147.6 million, creating a substantial difference between the GAAP operating loss and non-GAAP operating profit.
- Lower implied Q3 growth: Q3 guidance implies 36% year-over-year growth at the midpoint, indicating a moderation from Q2’s 48% rate.
- Cash conversion: Operating cash flow was nearly flat year over year and its margin contracted even as revenue expanded, making future cash-flow conversion an important measure of operating leverage.
- Execution on AI monetization: AI-credit usage is broad among larger customers, but Q2 was only the first full quarter of monetization. Continued expansion will depend on converting product adoption into durable seat and credit spending.
Conclusion
Figma’s Q2 2026 results combined accelerating revenue, high customer retention, and broad early AI adoption with weaker GAAP margins and a large stock-based compensation burden. The raised annual revenue outlook indicates confidence in seat and AI-credit expansion, but investors should watch Q3 growth, gross-margin trends, cash conversion, and whether the company can narrow the gap between GAAP losses and non-GAAP profitability.
This article may include AI-generated content that is human-reviewed, which is for reference and general information purposes only and does not constitute investment advice.
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